The U.S Securities and Exchange Commission (SEC) has decided to investigate Coinbase Global to decide whether the platform allowed its clients to trade digital assets that should have been registered as securities.
A spokesperson for the platform said that Coinbase does not list securities on its platform while the chief legal officer of Coinbase, Paul Grewal said, “we are confident that our rigorous diligence process—a process the SEC has already reviewed—keeps securities off our platform, and we look forward to engaging with the SEC on the matter.”
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The investigation was launched after a former Coinbase employee was charged with insider trading and violation of antifraud provisions of securities laws by the SEC a few days ago.
